Valuing What Costs

Image credit: https://www.pexels.com/@vladislav-reshetnyak-66283

A few years back, I wanted to enroll in a training class. The cost came in higher than I had budgeted. Also, I balked at the time requirement: two ninety-minute classes per week, plus one-on-one coaching, and homework.

So I asked whether the company could reduce the program’s scope to lower its cost.

One of the company’s founders—and a friend—pointed to the importance of the “ouch” factor: “If the charge doesn’t sting a little each month, you might skip training and shrug off homework.”

My experience proved the rule.

Knowing exactly how much I’d paid for the program, I attended every class, came fully prepared for each coaching session, and diligently did my homework. And remembering how much effort I’d dedicated to the education meant I valued what I’d learned very highly.

I’ve found the same truth in hosting events for FrogDog and the Johns Hopkins alumni association: Typically, paid activities get higher satisfaction ratings. Also, when people must invest even a nominal amount to sign up, we have more registrants—and they actually show.

Time and effort investments garner high valuations as well. Why do people put marathon stickers on their vehicles and get Ironman tattoos? They worked hard to accomplish something—so it means a lot to them. They want the world to know.

Free events, products, and services seem superficial; people don’t take them seriously. Therefore, they don’t value them as highly as things into which they’ve invested time, money, and attention.

Want academic evidence?

A 2010 study by Johns Hopkins scientists published in the Proceedings of the Royal Society B found that critters enjoy food more when they’ve had to work to get it.

Mice pressed one lever a single time for one food item and fifteen times for another morsel. Even when the one-press treat had higher calorie density (and, therefore, yumminess factor), the lower-calorie food got more attention once the mice had unfettered access to either.

The moral:

Don’t work for free. People won’t come back later to pay you for it. In fact, they’re unlikely to value it much at all.

Have you had similar experiences?

P.S.: Credit where due: My friend Alicia Cuello suggested this post.